![]() Now, the Department is encouraging employers to pay the amount due electronically with their second quarter 2022 Form NYS-45, Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return, on their UI Online Services account. When the state received federal UI loans in the past, the IAS payment was due within 30 days of the notice mailing date or, for 2015, with their quarterly state unemployment insurance (SUI) tax filing. The IAS will vary from year to year, depending on the outstanding loan balance, wages subject to contributions and the federally prescribed interest rate. The IAS is calculated as the taxable wages reported by the employer for the fourth quarter of 2020 through the third quarter of 2021 multiplied by the IAS rate of 0.23% (.0023 in decimal form). According to the Department, "unless the federal government chooses to abate all or part of the interest incurred or the principal balance amount is repaid with no more interest accrued, businesses will be required to make annual IAS payments until all interest has been fully paid off." The IAS rate for 2022 is 0.23%, resulting in employers' paying approximately $27.60 per employee. The New York Department of Labor announced that employers will soon receive a bill from the Department, known as the Interest Assessment Surcharge (IAS), the proceeds of which will be used to pay federal interest charges of approximately $162 million owed by the state on its federal UI loans. An interest bill will be sent to employers, which they are encouraged to pay electronically with their second quarter 2022 Form NYS-45, Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return, due August 1, 2022.For 2022, the interest assessment rate is 0.23%, or approximately $27.60 per employee.The New York Department of Labor announced that starting in 2022, employers will have to pay a federal interest assessment owed on federal unemployment insurance (UI) loans.Sign up for a free 7-day trial today.New York employers will pay an interest assessment in 2022 for the state's federal UI loans Get all the latest tax, accounting, audit, and corporate finance news with Checkpoint Edge. The IRS also released a draft version of Form SS-4 (Application for Employer Identification Number) that removes the option to elect to file Form 944 (Employer’s Annual Federal Tax Return) instead of Form 941 (Employer’s Quarterly Federal Tax Return). The DOL currently projects the 2023 potential credit reduction for the Virgin Islands as 3.9%. The current credit reduction for the Virgin Islands is 3.6%. The IRS based the draft on that information, however, the DOL will not announce the final credit reduction states until November 2023. The draft forecasts that the credit reduction rates for California, Connecticut, Illinois, and New York will increase from 0.3% to 0.6%, and the credit reduction percentage for the Virgin Islands was not projected. Virgin Islands are subject to credit reduction as of January 1, 2023. Department of Labor (DOL), California, Connecticut, Illinois, New York, and the U.S. The IRS notes on the draft that according to the U.S. The draft of Form 940 Schedule A indicates that California, Connecticut, Illinois, New York, and the Virgin Islands will still be in credit reduction status for tax year 2023. There are no substantive changes to the draft of Form 940 from the current version aside from the tax year. Updated drafts of Forms 940 and 940 Schedule A. If an employer operates in a state that is classified as a FUTA credit reduction state for the tax year, additional FUTA tax will be owed on top of the 6.0% rate (see Payroll Guide ♤255 for more on Form 940). ![]() The form is used to report the Federal Unemployment Tax (FUTA) taxable wages paid to employees throughout the year, as well as the Federal Unemployment Tax either owed or deposited. Forms 940 and 940 Schedule A.Įmployers who have paid either $1,500 of wages or had one or more employees for part of a day for 20 weeks during the year must file Form 940. ![]() The revised drafts of Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return) and Form 940 Schedule A (Multi-State Employer and Credit Reduction Information) released by the IRS reflect a forecast of increased credit reduction rates for California, Connecticut, Illinois, New York, and the Virgin Islands. ![]()
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